Here, the price has a proper buy signal after we broke the long-term down trendline and the neckline of the inverse head and shoulders pattern. Tuesday brings us a small reversal, which can be a great occasion to buy with slightly lower prices. This setup looks really sweet.
The second one is the USDJPY, which is locked inside of the short-term rectangle. The upper line of the rectangle is an important mid-term resistance and the lower line is two-day horizontal support. In theory, a price should break the lower line of this formation as that what the trend was before. Price climbing above the resistance will deny this bearish approach but that is less likely to happen at the moment.
Last instrument is forgotten Bitcoin. Crypto is locked inside of the symmetric triangle pattern. Price just bounced from the upper line of this formation additionally strengthened by the long-term down trendline. That is a crucial resistance here! The breakout can drive the price towards the 6000 USD. In my opinion, a movement to the downside is more probable though. In this case, I am thinking about 2900 USD but to see this number, we need to see the breakout of the lower line of the triangle first.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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